Manchester-headquartered telecoms giant TalkTalk has called on the government and regulators to “step in” to protect customers as broadband bills are set to rise.
TalkTalk launched criticism towards Openreach as the telecoms firm said consumers, businesses and public sector bodies - including hospitals - will see “steep” rises to their bills in six months’ time.
"This is because regulators have allowed Openreach to increase their prices next year by inflation," TalkTalk said, "rather than charging at cost, as many European countries have done to protect consumers".
It also called for Openreach to face questions for “failing to live up to promises on competition and offering affordable prices to customers”.
Trista Harrison, TalkTalk Plc chief executive, said “it cannot be right” that hospitals will “end up paying thousands more for broadband” amid “tough” economic times.
“When the Prime Minister promised this time last year gigabit connectivity for everyone by 2025, we were front of the queue to applaud him,” she said.
“The problem is this target is in serious danger of being missed.
“Investment into Britain’s full fibre rollout is critical. But it’s got to be affordable – people cannot be forced to pay higher prices just to increase the profits for those building the network.
“So TalkTalk is asking the Government and Ofcom to make sure that competition thrives and that prices are fair for hard-pressed Britons.”
TalkTalk, the UK’s largest value broadband provider, said, next April, households, businesses and public sector bodies will “face thousands of pounds being added to their annual broadband bills”.
The firm has also called on government and Ofcom to reconsider an uncompetitive system that has made these price rises possible, and carry out an 'affordability assessment' that reflects our new tough economic circumstances as a result of Covid-19.
TalkTalk sponsored a study, delivered by think tank Social Market Foundation, which says the government’s promise to deliver full fibre broadband to every home by 2025 is likely to be missed “radical changes” to telecoms policy are made.
The Prime Minister promised during the 2019 general election campaign to deliver “full fibre broadband to every home in the land” by 2025.
The study is published one year after the government promised an extra £5 billion to broadband roll-out.
The Social Market Foundation said full fibre broadband coverage stands at 14 per cent across the country and said the country had a “mountain to climb” to hit Boris Johnson’s target for universal coverage.
Scott Corfe, Social Market Foundation research director, said: “Delivering the rollout of full-fibre broadband fairly and quickly is hugely important for the UK economy, and all the more so because of pandemic restrictions that have left so many of us working and socialising online.
“The 2025 target is extremely ambitious, and the UK still has a mountain to climb to reach it.
“Getting there will require some radical changes, especially in how the public sector uses its huge buying power to support demand for broadband and offer the industry some certainty that funding new networks will pay off.
“To keep the Prime Minister’s bold promise of connecting every household in the country by 2025, minsters should look to the example of New Zealand and ask whether Britain’s Brexit outcome could allow the creation of new local public-private companies to deliver the most expensive final miles of the new network.”
An Ofcom spokesperson said: “Our proposals are designed to protect customers from high prices, and help fuel a full-fibre future for the UK.
“Supporting competition is crucial to this and we’re putting in place incentives for companies to build full fibre across the country – while keeping wholesale prices for entry-level superfast broadband flat in real terms.”
